Freddie Mac Sues Banks for LIBOR Rate Rigging

According to major news sources, Freddie Mac has sued 15 big international banks, including JPMorgan Chase, Bank of America and Citigroup, accusing them of rigging the LIBOR rate and causing huge losses for the government-controlled mortgage giant.

The reports note that a U.S. “watchdog” has found that Freddie and Fannie Mae together may have lost more than $3 billon on their investments from the banks’ rate-rigging.